“What is the sports business development/issue you’re watching most closely over the next 12 months and why?”
“The drastic effect of ‘cord cutters’ on the cable television industry. Digital news whacked the newspaper industry,
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Several executives said they are closely watching the fallout from “cord cutting” in the television industry.
Photo by: Getty Images; photo illustration by Corey M. Edwards |
and now the cable television industry is reeling with the onset of streaming content and its new competitors (Amazon, Netflix, Hulu, Yahoo, etc.). Between 2011 and 2015, ESPN lost 7 million subscribers; predominately millennials that didn’t want to pay monthly surcharges for sports programming, or need 200 cable stations. ‘Cord-cutting’ has cost the cable TV industry millions of subscribers and dollars, while ESPN absorbs increased rights fees and long-term contracts. This continual shift in viewing habits is a potential economic tsunami for most cable television operators. As the ‘baby boomers’ ride into the sunset and the ‘millennials’ take their place in the market, we will see a drastic change in how content is viewed, and how sports content is delivered to our alternative screens.”
Donald Dell
Group president, media, tennis and events, Lagardère Sports and Entertainment
“Is virtual reality a game changer or a parlor trick? How quickly will virtual reality headsets be adopted? What are the opportunities and implications for the sports business? What are the best-in-breed production techniques for mainstream sports? What are the revenue opportunities for rights holders?”
David Nathanson
Head of business operations, Fox Sports
“Security. It’s something I’ve been studying for a couple of years now and we’ve been making investments into. The
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leagues and venues work well with the law enforcement agencies and events are generally very safe. However, there’s a new generation of threats coming that we need to anticipate, prevent, and make sure response times are as short as possible. The irony is that the more safety measures and more visual deterrents you put in place, the less-safe an event feels to a guest. How do we effectively create even more secure environments without creating police states that visually scare people away or make their experience worse?”
Tom Garfinkel
President and CEO, Miami Dolphins
“The NHL’s new 3-on-3 overtime rule has been a big hit, so I’m curious to see how the new format reinvigorates the All-Star Game in January. I’ll also be watching how viewers consume Rio 2016. I think a live prime-time Olympic show, which essentially hasn’t happened for a Summer Games since Atlanta in 1996, will still draw big numbers on the old-fashioned TV, but it will be interesting to monitor how people watch the Games away from their living rooms.”
Sam Flood
Executive producer, NBC Sports and NBCSN
“NFL officiating. Dialogue about officiating errors has reached a crescendo due to advances in technology, an increasingly complicated rule book with increasingly nuanced rules, and the advent of social media. While officiating is not in and of itself a business issue, it is of critical importance to the sport and thus the business of football. We must believe that games are officiated consistently. A rule that is enforced or interpreted in one manner in one game must be enforced or interpreted in the same manner in all games. … How will the NFL address officiating to prevent a confidence crisis? Will it hone the rule book, better deploy technology and/or take other steps to minimize or correct human error (acknowledging that human error will, of course, always exist in a sport played at such speed)?
Amy Trask
Former CEO, Oakland Raiders
“The evolving media landscape and how fans, millennials in particular, are consuming sports is a development we’re paying very close attention to in 2016 and beyond. From social platforms and their innovative curated experiences to digital outlets and their push into live streaming, consumption of races and games is changing almost by the day. All the top social platforms are trying different ways to engage and grow their user bases. For fans to have dynamic views of a live event — everything from exclusive behind-the-scenes content to live scoring integrated into their social platforms — effective curation personalizes the experience for fans and builds a more engaged community.”
Steve Phelps
Executive VP and CMO, NASCAR
“E-sports is one of the fastest-growing sports and entertainment genres, attracting a coveted young adult demographic. With global viewership reaching more than 226 million people, this is a sport that has gained plenty of attraction and interest — from sold-out arenas to millions of individuals watching competitions streamed online to growing advertiser interest. Earlier this year, Turner and WME-IMG formed a strategic partnership to create a transformative e-sports competitive gaming league, including a premium live event experience and televised coverage airing exclusively on TBS. … With this type of momentum and interest, e-sports is definitely a property worth watching in 2016.”
Lenny Daniels
President, Turner Sports
“We are closely watching the evolution of content delivery by sports and entertainment properties and the way that content is bundled. We have seen that the delivery of customized content to our fans — via our OTT product, PGA Tour Live, as well as across our digital and social platforms — not only provides fans what they are looking for but has helped drive consumption and awareness of our programming with our traditional media partners.”
Jay Monahan
Deputy commissioner, PGA Tour
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“I’ll be closely watching three topics next year. First, potential consolidation in sports media and whether Fox will revisit an acquisition of Turner. Second, the outcome of the FIFA corruption saga and the efforts made to reform the governing body. Third and closest to home, the changes that are percolating in NASCAR. Already in the early stages of its new TV broadcast package, NASCAR will be securing its next major entitlement sponsor of its premier Cup series. On the racetrack, a new younger generation of star drivers like Chase Elliott, Darrell Wallace Jr. and Chris Buescher are charging to the forefront as longtime stars Jeff Gordon and Tony Stewart step away from the grid. But perhaps the most intriguing development is NASCAR’s pending restructuring of team ownership into a more traditional professional sports franchise-like model, which will result in more ownership stability, rising value and ultimately lead NASCAR into a new era of greater collaboration between NASCAR and its stakeholders.”
Rod Moskowitz
Principal and CEO, Fuel Sports Management Group
“In 2016, I’ll be keeping an eye on the evolution of e-sports, including on college campuses. Some are speculating that video gaming will open up college ‘sports’ to an entirely different demographic (both for participants and spectators). How will the NCAA, conferences and schools respond to the craze? Switching gears entirely, I’m wondering how women’s basketball marketers will capitalize on some major milestones next year. 2016 will bring 20/20/35: the 20th anniversary of the 1996 gold medal Olympic Team (which started a record-breaking gold-medal run — Team USA will be gunning for its sixth straight Olympic title in Rio); the 20th season of the WNBA; and the 35th edition of the NCAA Women’s Final Four. The women’s game has made tremendous progress over the past few decades, and hopefully significant boosts in audience and revenue will be the reward.”
Val Ackerman
Commissioner, Big East Conference
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Executives wonder if protests like the one involving Missouri’s football team will help bring about social change elsewhere.
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“Ever since both collegiate and professional sports teams established their respective presence amongst the general population, a hierarchy was set in place. Today, this hierarchy has morphed into a strong-willed establishment, one which generates billions of dollars. Professionally, this chain of command is accepted due to the significant financial impact on individual players and the profession they have chosen. However, the amateur athletic environment is an entirely different ballgame. Non-profit institutions that generate exorbitant sums of money, largely from athletic programs, present a complicated environment when it comes to student athletes. Ed O’Bannon (O’Bannon v. NCAA, an antitrust class action lawsuit against the NCAA), Northwestern University and, most recently, the University of Missouri have shown there is a growing consensus among student athletes to influence change in bringing about fair practices as related to social and financial issues. How this important and necessary movement takes shape in 2016 will be intriguing and will undoubtedly set protocol moving forward.”
Ben Davis
CEO, Phizzle
Here is a sampling of what specific Turnkey Sports Poll panelists wrote as the sports business story they plan to watch closely in 2016:
College sports and antitrust issue — Tom Sheridan, Chicago White Sox
Debut of the new Daytona International Speedway, the world’s first motorsports “stadium” — Blake Davidson, NASCAR
Escalating ticket prices and pricing out the average fan — Dave Kaval, San Jose Earthquakes
Growth of soccer in the U.S. with the International Champions Cup, Centennial Copa America and Summer Olympics being held this summer. — T.J. Ciro, Relevent Sports
How over-the-top content will continue to evolve and how teams will be able to monetize this opportunity. — Nic Barlage, Phoenix Suns
Like most, I’ll be interested to see how the NFL plays out in LA. — Chris Gargani, Live Nation Entertainment
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Now that the University of Missouri has proven that a football team refusing to play has a desired effect, how many more college football teams will use this as leverage for both social and compensatory change — Rob Mattina, Detroit Red Wings
Olympics in Rio and athlete and spectator safety — John Rizzi, Tickets.com
Success of the World Cup of Hockey — Darryl Dionne, Professional Hockey Players’ Association
Summer Olympics if the Russians are barred from participating — Neal Pilson, Pilson Communications
The advancement of sustainability in the sports industry — David Muller, Green Sports Alliance
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The continued growth of corporate support of youth sports and activities — E.J. Narcise, Team Services
The growth of virtual reality — Andy Dolich, Dolich & Associates
The legal battlefield in daily fantasy sports. — Derek Eiler, Fermata Partners
USA men’s national team in FIFA World Cup qualifying — Steve Pastorino, Oakland A’s
Virtual seating via virtual reality technology — Mike Burch, Speedway Motorsports Inc.
Source: Turnkey Sports & Entertainment in conjunction with SportsBusiness Journal. The Turnkey Sports Poll covered more than 2,000 senior-level sports industry executives spanning professional and college sports.
